How to make Freight Cost flow from Sending to Receiving Org in an IMT
SummaryHow to make Freight Cost flow from Sending to Receiving Org in an IMT
The customer supply chain requires material flow between Inventory Orgs. The material flows can be between Inventory Orgs of the same Business Unit or across Business Units.
There is no requirement for PO / SO / Invoicing when it’s across BUs. Also, there is no mark up (profit) involved in these transfers. However, there obviously is Freight Cost associated with these material transfers.
The requirement is that the Sending Org should recover the freight cost (from accounting perspective) and there should be an increase in the inbound cost (for the same amount) for the receiving org. Note the Orgs are Perpetual Average (PAV) Costed.